(1) So long as the Authority is liable under a guarantee, the mortgagee with whom such guarantee was entered into shall not exercise the power of sale—
(a) at any time without giving 14 days prior notice in writing to the Authority of his or her intention so to do;
(b) within one month from the date on which such right shall have become exercisable under the mortgage, except with the written consent of the Authority;
(c) without giving the Authority the option, on the exercise of such power, of purchasing the property which is the subject of the mortgagee;
(d) by private contract if the Authority shall request a sale by public auction.
(2) Without prejudice to the provisions of subregulation (1), when a mortgagee's power of sale becomes exercisable, such mortgagee shall exercise such power within such time and in such manner as the Authority may direct.
(3) Despite subregulations (1) and (2), the mortgagee may at any time after a mortgagor has twice in one year been in default give 7 days' notice in writing to the Authority of its intention to foreclose or exercise its power of sale and if the Authority does not within 14 days after the expiration of the notice exercise its option to purchase the property the mortgagee shall be at liberty to foreclose or exercise its power of sale and any such sale may be by public action or private contract in the discretion of the mortgagee.